A
tax haven is a place where certain taxes are levied at a low rate or
not at all. This encourages wealthy individuals and/or firms to areas
that would otherwise be overlooked. Different jurisdictions tend to be
havens for different types of taxes, and for different categories of
people and/or companies.

Taxation
worldwide

Most
countries

Most
countries impose taxes on income earned or gains realised within that
country regardless of the country of residence of the person or firm.
Most countries also tax their residents (individuals and companies) on
all their worldwide income.

One
way a person or company takes advantage of tax havens is by moving to,
and becoming resident for tax purposes in, an appropriate country.
Another way for an individual or a company to take advantage of a tax
haven is to establish a separate legal entity (an offshore
company, trust
or foundation),
subsidiary or holding company there. Assets are transferred to the new
company or trust so that gains may be realised, or income earned,
within this legal entity rather than earned by the beneficial owner.

United
States

The
United
States is unlike most other countries in that its citizens are
subject to U.S. tax on their worldwide income no matter where in the
world they reside. U.S. citizens therefore cannot avoid U.S. taxes
either by emigrating or by transferring assets abroad. According to
Forbes magazine some nationals choose to give up their United States
citizenship rather than be subject to the U.S. tax system [1].

However,
U.S. citizens who reside (or spend long periods of time) outside the
U.S., may be able to exclude up to US$80,000 (or foreign equivalent)
of salaried income earned overseas (but not other types of income), as
well as foreign housing expenses. Additionally, the U.S. will normally
allow a U.S. citizen to subtract any foreign income taxes paid on
foreign sourced income, from the U.S. income tax due on that income.
Also, U.S. citizens do have the option of setting up an offshore
foundation or trust, which can be used as a tax reporting free entity.
However, constraints exist on how the income is used. For example,
foundations stipulate that funds must be used for altruistic purposes.

Incentives
for the tax haven

Reasons
for becoming a tax haven are several. Some nations may find they don't
need to charge as much as some industrialised countries in order for
them to be earning sufficient income for their annual budgets. Some
may offer a lower tax rate to larger corporations, in exchange for the
companies locating a division of their parent company in the host
country and employing some of the local population. Other domiciles
find this is a way to encourage conglomerates from industrialised
nations to transfer needed skills to the local population. Still yet,
some countries simply find it costly to compete in many other sectors
with industrialised nations and have found a low tax rate mixed with a
little self-promotion can go a long way to lure companies to their
domiciles.

Many
industrialised countries claim that tax havens act unfairly by
reducing tax revenue which would otherwise be theirs. Claims are made
that money launderers also use tax havens extensively, even though
regulations in tax havens can actually make money laundering more
difficult than in locations with a large black market such as New York
City or London.

Bermuda
does not levy income tax on foreign earnings, and allows foreign
companies to incorporate there under an "exempt" status.
Exempt companies may not hold real estate in Bermuda or trade
there, nor may they be involved in banking, insurance, assurance,
reinsurance, fund management or similar business, such as
investment advice, without a license. The island also maintains a
stable, clean reputation in the business world. At present, there
are no benefits for individuals. In fact, for a non-Bermudian to
own a house on the island, they would have to pay a minimum of
$15,000 a year in land tax alone.

British
Virgin Islands: the 2000 KPMG report to the United
Kingdom government indicated that the British Virgin Islands
was the domicile for approximately 41% of the world's offshore
companies, making it by some distance the largest offshore
jurisdiction in the world by volume of incorporations. The British
Virgin Islands has, so far, avoided the scandals which have
tainted less well regulated offshore jurisdictions.

In
the Channel
Islands, no tax is paid by corporations or individuals on
foreign income and gains. Non-residents are not taxed on local
income. Local taxation is at a fixed rate of 20.0% in Jersey,
Guernsey,
& Alderney
and 0% in Sark.

Cyprus:
this tax haven has exploded in popularity as of late and it is
expected to grow even more. There are many incentives to own a
holding company and the tax rates are the lowest of any EU
country.

In
Gibraltar,
tax exempt companies, which must not trade or conduct any business
locally, are taxed at a flat rate of up to £300 a year.

Hong
Kong's tax rates are so low that it can be considered a tax
haven.

Switzerland
is a tax haven for foreigners who become resident after
negotiating the amount of their income subject to taxation with
the canton in which they intend to live. Typically taxable income
is assumed to be five times the accommodation rental paid.

The
UK is a tax haven for people of foreign domicile, even if they are
UK resident (residence and domicile being separate
legal concepts in the UK), in that they pay no tax on foreign
income not remitted to the UK. Similar arrangements are to be
found in a few other countries including Ireland.

Some
states within the United
States, particularly Delaware, offer incentives for businesses
to locate there. Many banks and other financial companies are
domiciled in the state of Delaware even though Delaware is one of
the smallest states in the USA.

Vanuatu,
an island archipelago state in the Micronesian Pacific, is a tax
haven that does not release account information to other
governments and law enforcement agencies. In Vanuatu, there is no
income tax, no withholding tax, no capital gains tax, no
inheritance taxes, and no exchange controls.

Some
tax havens including some of the ones listed above do charge income
tax as well as other taxes such as capital gains, inheritance tax, and
so forth. Criteria distinguishing a taxpayer from a non-taxpayer can
include citizenship and residency and source of income. For example,
in the Cayman
Islands, one pays no tax if one earns all one's revenue from
outside the country but one does pay tax if one earns income from
within the country.

Amounts

While
incomplete, and with the limitations discussed below, the available
statistics nonetheless indicate that offshore banking is a very
sizeable activity. IMF calculations based on BIS data suggest that for
selected OFCs (Offshore Financial Centers), on balance sheet OFC
cross-border assets reached a level of US$4.6 trillion at end-June
1999 (about 50 percent of total cross-border assets), of which US$0.9
trillion in the Caribbean, US$1 trillion in Asia, and most of the
remaining US$2.7 trillion accounted for by the IFCs (International
Financial Centers), namely London, the U.S. IBFs, and the JOM
(Japanese Offshore Market).([2])

SOLAR
COLA as an INVESTMENT OPPORTUNITY?

The
soft drinks market is a tough place to do business, unless you have
something different to offer and the marketing muscle to match.

For
nearly 100 years Coca Cola and Pepsi Cola have dominated the
marketplace with similar products. Each company spends around
$600-800 million dollars a year to maintain its market position. The
advertising centers around sport and music, with a scattering of
irregular television campaigns. Each company launches (or attempts to
launch) new brands every year. So far, they have not proved as
successful as their regular cola brands.

Red
Bull, although in a different drinks category, spends not quite as
much on advertising , but has managed to acquire instant status and
volume sales from sponsoring formula one, the Darpa Desert Challenge,
and now the New Jersey MetroStars football team.

Solar
Cola, apart from it's contemporary name, is a healthier cola based
drink. Just as refreshing, it contains a unique blend of added
ingredients as an aid to good health and energy levels. The
company contributes to and sponsors alternative projects, to include
this website, featuring movies, music and several thousand pages of
general information, which generates in excess of 3 million visits a
month already. Recent acquisitions include the rights to the
Solar Navigator World Electric Challenge - 2009/10, and also the new Bluebird
Electric land speed record car for 2007/8. The company may also
sponsor the London to Brighton Solar Car Run in 2008 (dependent on the
number of university entries received).

It
is thought that this marketing strategy will equal several hundred
thousand dollars of conventional Ad Agency spending. As an
example of the kind of media coverage such nautical antics generate,
you have only to look at the newspapers when Ellen Macarthur completed
her world circumnavigation. The same holds true for Sir Francis
Chichester and Sir Robin Knox-Johnston.

The
design of the Solar Cola can is copyright protected, with trademark
applications in the USA, Australia and Europe pending in Class 32 and
granted rights in the UK. Introduction of the drink is held in
abeyance pending official launch of one or other sponsored projects,
which will be activated when the time is right, such activation to
coincide with the market introduction of the drink.

Solar
Cola PLC is shortly to be activated for online investment as their
trading arm. The company is forecast to produce excellent
results for investors, with sustained growth to be followed by an
eventual flotation on the Stock Markets of the world in the next few
years. At this point estimates suggest investors will reap
substantial gains - in line with international Licensing expectations.

Solar
Cola Ltd is managing the funding requirement for the trading company.
They are looking for medium term or seed investment between £4-5
million to kick start phase two of the venture.

If
you are a Business Angel, or Equity House, looking for an opportunity
with the potential for good returns, please contact SOLAR COLA LTD for
details of their business plan.
Or for and informal chat, please ask for the funding project manager: Nelson
Kruschandl

This
material and any views expressed herein are provided for information
purposes only and should not be construed in any way as a prospectus
or offer. Please contact the company concerned for information
of any business opportunity or specific program. Before investing in
any business, you must obtain, read and examine thoroughly its
disclosure document or offering memorandum.